Electricity Cost Calculator

Have a Flat Monthly Service/Base Charge?

Estimated Monthly Bill

$135.00

The Numbers

  • Energy cost: $135.00
  • Estimated annual cost: $1,620.00

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Includes your inputs and results for this calculation, plus any additional calculations you've compared.

How This Calculator Works

Your electricity cost is your monthly usage in kilowatt-hours (kWh) multiplied by your price per kWh, plus any flat monthly service charge your utility bills regardless of usage. Enter your monthly usage and rate — both are printed on a recent utility bill — and this calculator estimates your monthly and yearly electricity cost.

Usage-based cost is the part that changes with how much electricity you actually use. The fixed service charge (sometimes called a “customer charge” or “basic service fee”) is a flat amount some utilities bill every month on top of usage, covering the cost of maintaining the connection to your home regardless of how much power you draw.

The Formula

Energy Cost=Monthly Usage (kWh)×Rate per kWh\vD{\text{Energy Cost}} = \vA{\text{Monthly Usage (kWh)}} \times \vB{\text{Rate per kWh}} Total Monthly Bill=Energy Cost+Fixed Monthly Service Fee\vE{\text{Total Monthly Bill}} = \vD{\text{Energy Cost}} + \vC{\text{Fixed Monthly Service Fee}} Estimated Annual Cost=Total Monthly Bill×12\text{Estimated Annual Cost} = \vE{\text{Total Monthly Bill}} \times 12

The annual figure is a simple 12-month projection at this month’s usage and rate — it doesn’t adjust for seasonal usage swings (like summer air conditioning or winter heating) or future rate changes, unlike the Solar Savings Calculator’s multi-year projection, which does model rate inflation over time.

Worked Example

900 kWh of usage at $0.15/kWh, with a $10 flat monthly service fee:

  1. Energy cost: 900 × $0.15 = $135.
  2. Total monthly bill: $135 + $10 = $145.
  3. Estimated annual cost: $145 × 12 = $1,740.

If you’re evaluating whether solar panels would be worth it, this monthly bill total is exactly the number the Solar Savings Calculator needs as its starting point.

Source: Wikipedia: Electricity Pricing.

Frequently Asked Questions

Where do I find my usage in kWh and my rate per kWh?

Both are printed on a recent utility bill — usually labeled "usage" or "kWh used" and a per-kWh rate or price. If your bill only shows a total and a usage number, divide the energy portion of the total by the usage to get an average rate.

Why doesn't this calculator include tiered or time-of-use rates?

Many utilities charge different rates depending on how much you use (tiered pricing) or when you use it (time-of-use pricing), and these structures vary enormously by utility and region. Enter your average rate for a straightforward estimate — for a bill with multiple tiers, divide your total energy charge by your total usage to get that average.

What's the fixed monthly service fee for?

Many utilities bill a flat "customer charge" or "basic service fee" every month regardless of usage, covering the cost of maintaining your connection. Not every utility bills one separately — leave it at $0 if yours doesn't.